Thursday, February 4, 2010

Correction and Bear Market Levels

The S&P 500 is now down 7.11% from its closing high of 1,150.23 on January 19th. For those expecting this pullback to turn into a 10% correction, the level you're looking for is 1,035.2. For those looking for the pullback to turn into a new -20% "bear" market, the level you're looking for is 920.18. The 10% correction level would take the index back to its lows in late October. A new bear market would take the index back to where it was trading in mid-July.